The rise of “sovereign wealth funds” has become a growing concern. It was, for example, discussed at the European Union’s Lisbon summit last week. But the dangers must not be exaggerated. With common sense, these new players can be accommodated within the tent of contemporary capitalism.

Today, argues Standard Chartered in a recent report, sovereign funds control some $2,200bn, or about 1.3 per cent of the stock of global financial assets. But the value of these funds is certain to rise, since they are the product of oil exporters’ exploding wealth or of the huge current-account surpluses of countries such as China and Singapore. Such states either have direct control over the surplus savings of their peoples or own the valuable commodities. Neither condition seems likely to change soon.